AlabamaAlabama sets aside sales tax money to administer food assistance
Alabama funds food assistance administration using 7.5% of the previous quarter's benefits, excluding recipient payments, while keeping spending and staffing limits.
What it does
Food assistance administration receives quarterly sales tax funding equal to 7.5% of the previous quarter's benefit value, excluding recipient payments. Spending and staffing limits still apply.
Remaining remote use tax money goes 75% to the General Fund and 25% to education. Other remaining use tax money goes 53% to the General Fund and 47% to education.
Argument forQuarterly funding tied to food assistance benefits could help Alabama pay for the work needed to administer the program.
Argument againstSetting aside sales tax money for food assistance administration could leave less for education, although unused money returns to the education fund.
More detail
Alabama pays the Department of Human Resources Trust Fund quarterly to administer statewide food assistance. The money comes from sales tax revenue and pays for administration rather than benefits for recipients. The formula excludes amounts recipients paid for benefits. Spending is limited by 1976–77 administrative costs, inflation, and required administrative work. County offices cannot exceed the average staff-to-recipient ratios from 1976–77. When spending limits conflict, the lower amount applies. Unused money with no outstanding commitments goes to the Education Trust Fund after the yearly accounting. The law took effect September 1, 2026. Payments occur on the first day of each fiscal quarter.
Alabama divides the remaining use tax money between the General Fund and the Education Trust Fund. For this distribution, purchases shipped from outside Alabama by out-of-state sellers count as use tax transactions, even if treated as sales tax elsewhere. These percentages apply after tax administration expenses and the earlier required distributions, including automobile use tax payments to the General Fund. The law took effect September 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9EnactedBecame Law
- Apr 2Ready to Enroll
- Apr 2EnrolledTo Governor
- Apr 2Signature Requested
- Apr 2Delivered to GovernorMinor
- Apr 1Third Reading in Second House
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1137. Result: pass.Lower
- Apr 1Motion to Read a Third Time and Pass - Adopted Roll Call 1137Passed House
- Mar 31Reported Out of Committee Second House
- Mar 31Read for the Second Time and placed on the Calendar (Ways and Means General Fund)Minor
- Mar 12Read for the first time and referred to the House Committee on Ways and Means General FundMinor
- Mar 12Pending Committee Action in Second House (Ways and Means General Fund)
- Mar 11Third Reading in House of Origin
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 826. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Mar 11Motion to Read a Third Time and Pass - Adopted Roll Call 826Passed Senate
- Mar 10Reported Out of Committee House of Origin
- Mar 10Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund)Minor
- Jan 14Read for the first time and referred to the Senate Committee on Finance and Taxation General FundMinor
- Jan 14Pending Committee Action in House of Origin (Finance and Taxation General Fund)Introduced
Taxes & Budget